Profit Up 58% At Am International

Pretax Income Rises 28%

Revenues Drop 2%

September 20, 1985

AM International Inc., the Chicago graphics products and services firm that emerged from Chapter 11 bankruptcy proceedings last fall, said pretax income climbed 28 percent and net income jumped 58 percent in its fiscal fourth quarter.

In the quarter, ended July 31, pretax income rose to $9.6 million from $7.6 million in the year-earlier period. Including extraordinary items and interest income and expenses, aftertax net income increased to $13.6 million, or 33 cents a share, from $8.6 million, or 22 cents a share.

Revenues dipped 2 percent, to $157.9 million from $161.8 million.

For the full year, pretax income climbed 38 percent, to $27.5 million from $20 million in fiscal 1984. Net income plunged 63 percent, to $25.5 million, or 62 cents a share, from $69.5 million, or $1.75 a share, the year before, when AM had a large extraordinary gain from terminating its employee pension plan.

Full-year revenues edged up 2 percent, to $611.7 million from $598.5 million.

``The company has now recorded three consecutive years of increasing

(operating) profits, and the prospects for the future remain promising,``

said Chairman Merle H. Banta.

The company said it is arranging for a 3-year, $32.5 million revolving credit agreement that will have provisions for multicurrency borrowing, allowing it to expand its foreign operations.